Binance CEO Changpeng Zhao (CZ) has responded to criticism following the listing of memecoin TST on the exchange. Zhao’s comments aimed to clarify his position on memecoins and address concerns about his alleged involvement in TST’s listing.
The controversy began after Zhao discussed TST, prompting speculation about his endorsement. “TST was NOT endorsed by me/us,” Zhao clarified. “It was just a test token used in a video tutorial.” He acknowledged the irony of his clarifications inadvertently fueling the token’s virality.
Addressing concerns about a perceived shift away from his emphasis on project fundamentals, Zhao reaffirmed his commitment to them. “I am a builder. I always focus on fundamentals,” he stated. He also clarified his stance on memecoins, stating that while he hasn’t personally invested in any, he isn’t against them. He drew parallels with his lack of personal investment in sports cars, art, NFTs, and most altcoins (holding only Bitcoin and BNB) while maintaining he isn’t opposed to any of these. He emphasized his support for the broader crypto industry, extending this view to memecoins.
Regarding TST’s listing, Zhao denied any involvement in the process. “I am entirely NOT involved in their listing process,” he declared. He explained that exchanges compete to list popular coins with high trading volume, advising project developers to focus on building rather than lobbying exchanges. “If your coin is actively sought after by traders, you don’t need to talk to exchanges,” he advised.
Zhao also offered some speculation on the appeal of memecoins over utility tokens. He suggested the increased regulatory scrutiny of utility tokens in recent years, often falsely labeled as securities, may have driven developers towards memecoins. He also pointed to the speculative nature of markets, noting that assets with stable values often see less trading activity and liquidity. Finally, he acknowledged the cultural aspect and “fun” factor of memecoins.
Zhao concluded by highlighting the current market opportunities and encouraging developers to “build things people want.” He also offered a critique of Binance’s listing process, noting the short four-hour window between announcement and listing, which can lead to price volatility between decentralized and centralized exchanges. While acknowledging the need for a notice period, he expressed uncertainty about a solution to this issue, advising caution to traders.
